Refinancing private student loans, on the other hand, comes with fewer drawbacks. Federal student loans make up the majority of the debt, while private student loans account for 8.4% of the total outstanding student loan debt in the country, according to the Education Data Initiative. Refinancing a private student loan to get a lower interest rate could save you money in the long run and help you pay off your debt faster. However, you should still do your research and consider your own financial situation and goals before committing to a refinance.
Here’s what you need to know about the top student loan refinancing lenders on the market, and how to decide if a refinance is right for you.